I was joined eps with basic pay of 10k in 2016. Later in 2020 changed company and my hr says i am not eligible for eps as my basic pay is more then 15k. But as per below thread i am eligible. What action can i take?
https://www.citehr.com/587997-intern...s-not-pg2.html
From India, Bengaluru
https://www.citehr.com/587997-intern...s-not-pg2.html
From India, Bengaluru
632
Dear Seniors,
One of our epf member left the job in 2017 and rejoined in Nov 2020 and now his salary is 19000/-. Is he eligible for EPF as he is out of coverage now.
and please let me know where is is mention in EPF act that "Any employee already had EPF account in his previous company, if the employee joins the new company and if the new company also has the EPF then that employee is covered under EPF act.
From India, Bhogpur
One of our epf member left the job in 2017 and rejoined in Nov 2020 and now his salary is 19000/-. Is he eligible for EPF as he is out of coverage now.
and please let me know where is is mention in EPF act that "Any employee already had EPF account in his previous company, if the employee joins the new company and if the new company also has the EPF then that employee is covered under EPF act.
From India, Bhogpur
Clarity exists in proviso to Para 26 A (2) of the EPF Scheme, extracted below:
26A. Retention of membership
(1) A member of the Fund shall continue to be member until he withdraws under
paragraph 69 the amount standing to his credit in the Fund or is covered by a
notification of exemption under section 17 of the Act or an order of exemption under
paragraph 27 or paragraph 27A.
(2) Every member employed as an employee other than an excluded employee,
in a factory or other establishment to which this Scheme applies, shall contribute to
the Fund, and the contribution shall be payable to the Fund in respect of him by the
employer. Such contribution shall be in accordance with the rate specified in
paragraph 29:
Provided that subject to the provisions contained in sub-paragraph (6) of paragraph
26 and [in paragraph 27], or sub-paragraph (1) of paragraph 27- A, where the
monthly pay of such a member exceeds [fifteen thousand rupees] the contribution
payable by him, and in respect of him by the employer, shall be limited to the
amounts payable on a monthly pay of [fifteen thousand rupees]
So from this sub-para it is evident that once an employee is covered under the EPF Scheme, he/she will continue to be so upto the ceiling amount, even if the salary exceeds such limit.
Hope this clarifies.
From India, Mumbai
26A. Retention of membership
(1) A member of the Fund shall continue to be member until he withdraws under
paragraph 69 the amount standing to his credit in the Fund or is covered by a
notification of exemption under section 17 of the Act or an order of exemption under
paragraph 27 or paragraph 27A.
(2) Every member employed as an employee other than an excluded employee,
in a factory or other establishment to which this Scheme applies, shall contribute to
the Fund, and the contribution shall be payable to the Fund in respect of him by the
employer. Such contribution shall be in accordance with the rate specified in
paragraph 29:
Provided that subject to the provisions contained in sub-paragraph (6) of paragraph
26 and [in paragraph 27], or sub-paragraph (1) of paragraph 27- A, where the
monthly pay of such a member exceeds [fifteen thousand rupees] the contribution
payable by him, and in respect of him by the employer, shall be limited to the
amounts payable on a monthly pay of [fifteen thousand rupees]
So from this sub-para it is evident that once an employee is covered under the EPF Scheme, he/she will continue to be so upto the ceiling amount, even if the salary exceeds such limit.
Hope this clarifies.
From India, Mumbai
@glidor i understand not contributing to eps is not correct. I should ask my hr to correct it or epfo department?
From India, Bengaluru
From India, Bengaluru
Epf ceiling is 15 K , especially an employer has clarity that for eps conribution the limit remains 15 k only and therefore employer should not have problem in contributing eps.
It is manadatory if epf is deducted,then eps is applicable by default with in the existing limit of contribution.
From India, Vadodara
It is manadatory if epf is deducted,then eps is applicable by default with in the existing limit of contribution.
From India, Vadodara
Dear Lakshmi-Tejas-M-A,
Without referring to what is written in the link given by you and the answers given by the learned friends over here, my submission is as under:
What your HR says is totally wrong. You can not be excluded from EPS as your PF pay is more then 15k. Once you became a member of EPS, you can not be excluded from it by virtue of you joined new employment above 15k.
Only the new entrants to the PF scheme joining on or after 01.09.2014 and whose PF salary is more than 15k are not entitled to join the EPS.
From India, Mumbai
Without referring to what is written in the link given by you and the answers given by the learned friends over here, my submission is as under:
What your HR says is totally wrong. You can not be excluded from EPS as your PF pay is more then 15k. Once you became a member of EPS, you can not be excluded from it by virtue of you joined new employment above 15k.
Only the new entrants to the PF scheme joining on or after 01.09.2014 and whose PF salary is more than 15k are not entitled to join the EPS.
From India, Mumbai
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EPS - Wage Limit increase_01.09. 2014.pdf
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